TY - CONF

T1 - Exploring the influence of institutional factors on the development of social entrepreneurship in different national contexts

AU - Арай, Юлия Николаевна

AU - Богатырева, Карина Александровна

AU - Леус, Дарья Валерьевна

PY - 2025

Y1 - 2025

N2 - This paper explores the development of social entrepreneurship from an institutional perspective. Social entrepreneurship implies the creation of a new business model that has both a non-profit and a for-profit element and aims to create value by addressing significant social or environmental issues. The study focuses on how formal institutions measured through the World Governance Indicators’ impact the development of social enterprises and how informal institutions operationalized with the Hofstede cultural dimensions moderate this relationship. The existing research suggests two opposing theories regarding the institutional effects on social entrepreneurship: on the one hand, institutional voids are known to create business opportunities for social enterprises; on the other hand, institutional support is essential for the development of social entrepreneurship. Having tested both perspectives based on the Global Entrepreneurship Monitor (GEM) 2022 countrylevel data, we advocate for the institutional support hypothesis and further reveal that power distance, individualism, and indulgence are important cultural dimensions that moderate the focal relationship between the development of social entrepreneurship and formal institutions. In light of the two previously described conflicting perspectives and the duality of formal institutions’ effects, we next present evidence of a curvilinear inverted U-shaped relationship between social entrepreneurship and formal institutions. This research implies that, as opposed to low or high levels, an intermediate degree of institutional development guarantees a better environment for social entrepreneurship. This finding is supported by examples of social entrepreneurship development in Russia, UAE, and Switzerland. This paper contributes to the institutional view of social entrepreneurship and discusses ways to encourage its development to further foster achievement of the UN SDGs

AB - This paper explores the development of social entrepreneurship from an institutional perspective. Social entrepreneurship implies the creation of a new business model that has both a non-profit and a for-profit element and aims to create value by addressing significant social or environmental issues. The study focuses on how formal institutions measured through the World Governance Indicators’ impact the development of social enterprises and how informal institutions operationalized with the Hofstede cultural dimensions moderate this relationship. The existing research suggests two opposing theories regarding the institutional effects on social entrepreneurship: on the one hand, institutional voids are known to create business opportunities for social enterprises; on the other hand, institutional support is essential for the development of social entrepreneurship. Having tested both perspectives based on the Global Entrepreneurship Monitor (GEM) 2022 countrylevel data, we advocate for the institutional support hypothesis and further reveal that power distance, individualism, and indulgence are important cultural dimensions that moderate the focal relationship between the development of social entrepreneurship and formal institutions. In light of the two previously described conflicting perspectives and the duality of formal institutions’ effects, we next present evidence of a curvilinear inverted U-shaped relationship between social entrepreneurship and formal institutions. This research implies that, as opposed to low or high levels, an intermediate degree of institutional development guarantees a better environment for social entrepreneurship. This finding is supported by examples of social entrepreneurship development in Russia, UAE, and Switzerland. This paper contributes to the institutional view of social entrepreneurship and discusses ways to encourage its development to further foster achievement of the UN SDGs

M3 - Abstract

SP - 128

T2 - 2nd International Conference on Advancing Sustainable Futures

Y2 - 11 December 2024 through 12 December 2024

ER -